San Jose, CA – The grim halls of federal court in San Jose were filled with the chilling sound of a guilty verdict today as Hank Risan, 70, from Santa Cruz, faced four counts of wire fraud for what authorities call a multi-million-dollar scam. According to the Department of Justice USAO, Risan, who owned Media Rights Technologies (MRT) and BlueBeat, is accused of duping investors out of nearly $3.2 million with his so-called music streaming service.
The indictment, filed on July 31, 2025, and unsealed this week, charges Risan with selling stock in MRT and BlueBeat based on a litany of lies, including claims that he owned the copyrights to over 2.5 million songs by major artists. His fraudulent scheme also involved fabricating valuations for his companies, misleading investors about an imminent acquisition by a multi-national media conglomerate, and falsely touting his connections with a former U.S. Commerce official.
Prosecutors claim that Risan convinced investors to shell out nearly $2 million in stock purchases and “loans,” which he then used to fund personal expenses like credit card bills and mortgage payments. The FBI’s Special Agent in Charge, Sanjay Virmani, has confirmed the severity of the charges, stating, “This case is a stark reminder of how white-collar crime can devastate individuals and families.”
Risan was released on a $100,000 unsecured bond and will face U.S. District Judge P. Casey Pitts for a status conference on Oct. 8, 2025. If convicted, he could spend up to 20 years behind bars and pay a fine of $250,000 per count of wire fraud.
U.S. Attorney Craig H. Missakian echoed Virmani’s sentiments, emphasizing the importance of holding individuals accountable for financial crimes. Assistant U.S. Attorneys Matthew Chang and Jeff Nedrow will lead the prosecution with the assistance of Natachiana Burney and Susan Kreider.
The case is a result of an investigation by the FBI, which continues to crack down on white-collar crime across California. Risan is presumed innocent until proven guilty beyond a reasonable doubt in court.”
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Key Facts
- State: California
- Agency: DOJ USAO
- Category: Fraud & Financial Crimes|Cybercrime|Public Corruption|White Collar Crime
- Source: Official Source ↗
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